Eichhorn, who was here for the new Superb launch, spoke to TOI about his plans for IndiaShubham Mukherjee | TNN | February 24, 2016, 09:21 IST

Werner EichhornWerner Eichhorn, member of the global board of management and head of sales and marketing at Skoda, plans to infuse new vigour in Indian operations, which have been hamstrung by service issues and a low market share for long.

With its exit from the small car segment — Fabia in 2013 — chances of a higher market share are low for now. However, Eichhorn wants to jumpstart the Indian operations with plans to launch two to three cars (new or relaunches) every year, a new SUV by the year 2017, investments in the dealer network and a refreshed corporate identity.

Eichhorn, who was here for the new Superb launch, spoke to TOI in an exclusive interview. Excerpts:

Except for the last few months, the growth of the Indian automobile market has been uncertain. Are you disappointed?

India is one of the most complex and competitive markets, but has immense potential and is a key market for us. After China, Western Europe and Russia, India is gaining most significance in our global road map. India can be a 3-million market by 2017-18 and we are very optimistic about India. There is a lot more confidence in India after the last general election results came out (when the Modi government came to power). Till then, we were in the wait-andwatch mode. The regulatory structure and macro indicators such as GDP growth, inflation look good for creating demand for our products. Besides, there is more positivity as well.

The top 5 companies together account for 85% of the auto market share. You account for less than 1%. Do you miss a small car in your portfolio which can give you volumes?

The segmentation is not in our favour since 80% of the car market is in the lower size and price category. It does not take into account the high quality and safety that our cars provide. There are signals that the market is maturing with a preference for superior design, technology, quality and safety against just pricing. In the Rapid (a model in the Rs 10-lakh range) segment, we have 15% share and in the Octavia (premium range), we have 50% share. Small cars are not a viable business now given the exchange rate, but we keep analysing its potential in India and will hopefully be back with it over the next three to five years.

What's your strategy for the Indian market going forward?

We will retain Rapid, Octavia and Yeti and are now launching the new Superb. A new SUV to be priced above the Yeti, which is being showcased at the Paris motor show, is expected to follow in 2017-18. We will launch two to three cars in the country every year for the next few years. We are investing in the country through our dealer network to improve image and customer satisfaction. The dealer network is being revamped with a new corporate design language and identity, which will support premium products. The company is targeting 10% growth going forward (year-on-year).

What is the level of localization in India?

We do not disclose these figures but it is up to 65% in some models.

How has the negativity around the emissions scam impacted your brand?

The year 2015 has been the most successful year ever and we are on track to build our brand connect with consumers through new products and design.